AXA's Restricted Tier 1 Subordinated Notes Issued Under Its Euro Medium-Term Note Program Rated 'BBB+'

MILAN (S&P Global Ratings) Jan. 10, 2024--S&P Global Ratings today assigned its 'BBB+' long-term issue rating to the perpetual restricted tier 1 (RT1) notes issued by France-based global multiline insurance group AXA (A+/Stable/A-1+) under its euro medium-term note (EMTN) program. AXA is the operating holding company and internal reinsurer of the AXA group (core operating entities rated AA-/Stable/--). We classify these notes as having intermediate equity content. The rating on the notes is three notches below the long-term issuer credit rating on AXA. We deduct: One notch to reflect the notes' subordinated status to senior bondholders; One notch to reflect the risk of potential write-down of principal; and One notch to reflect the mandatory and unconditional optional interest cancellation features.

...January 10, 2024 MILAN (S&P Global Ratings) Jan. 10, 2024--S&P Global Ratings today assigned its '###+' long-term issue rating to the perpetual restricted tier 1 (RT1) notes issued by France-based global multiline insurance group AXA (A+/Stable/A-1+) under its euro medium-term note (EMTN) program. AXA is the operating holding company and internal reinsurer of the AXA group (core operating entities rated ##-/Stable/--). We classify these notes as having intermediate equity content. The rating on the notes is three notches below the long-term issuer credit rating on AXA. We deduct: - One notch to reflect the notes' subordinated status to senior bondholders; - One notch to reflect the risk of potential write-down of principal; and - One notch to reflect the mandatory and unconditional optional interest cancellation features. We view one notch as sufficient to reflect the payment risk on these notes because of AXA group's high Solvency II ratio of 230% as of Sept. 30, 2023. However, we could...

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